Home Prices Continue to Rise, But Sellers Want More

Home prices keep increasing, but they’re not bringing in as much as sellers like.

A new report for real estate data firm Redfin showed that the median U.S. home price hit a record $396,500 during the four weeks ending June 15. But while homebuyers were paying a record amount, homeowners wanted even more from their sales, as the data showed that the median sale price was about $26,000 less than the median asking price.

That’s a reversal from the post-pandemic housing boom in 2021 and 2022, when the median housing sale price was higher than asking prices as buyers outbid each other for available properties.

“I’m explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market and invite buyers to negotiate,” said Kelly Connally, a Redfin Premier agent in Tulsa, Okla. 

Home Sale Prices Rising Despite Higher Inventory Levels

Redfin’s data on housing prices is lower, but in line with other recent measurements of home prices. The National Association of Realtors’ data shows that home resales were higher at a median price of $414,000.

The rise in median home sales price comes despite a growing inventory imbalance that favors buyers. A recent Redfin study showed that home listings outnumber homebuyers by about half a million, creating conditions that should be driving home prices lower.

Homebuyers are facing pressure not only from high housing prices, but also from elevated mortgage rates and inventory that is still below pre-pandemic levels despite rising in recent months. 

While home prices haven’t fallen yet, the pressure from rising inventory levels is slowing the growth of home sale prices. The report showed that the 1% growth in home sales prices over the most recent four-week period was below the 5% growth in sales prices recorded at the beginning of the year.